Keppel REIT DPU Decreased but Manager Management Fees Increase

Keppel REIT Logo

I held 7% of office REITs in my stock portfolio, mainly made up of Keppel REIT and Frasers Commercial Trust at 5% and 2% respectively.

Keppel REIT has announced its 4Q2016 financial results on 24th January 2017. A set of pretty disappointing results which reflects the weakness and headwinds in office REITs in current economy. I expect headwinds but didn’t expect results to be so bad. This is in consideration that Keppel REIT sold its 77 King Street asset at 40% profit at A$160 million. Where is the profit attributed to share holders? (Read point number 6 under Investment Risks below)

Gearing ratio as at 31st December 2016 is at 38.5%. Perhaps most of the profit from the sale of 77 King Street has been used to repay its debt.

Although the portfolio occupancy is at 99.2%, Keppel REIT achieved an average signing rent of $9.60 per square foot for its Singapore offices. This is slightly higher than the current rent of $9.10 per square foot for Grade A office rental rate. Read More

SoilBuild REIT High Yield Provided Investors Can Stomach the Risks

Soilbuild REIT Logo

2016 was an exciting year for SoilBuild REIT. I have been following SoilBuild REIT closely since I held 5% of Soilbuild REIT in my stock portfolio. Activities in 2016 includes the Default of Technics Offshore Marine, Acquisition of Bukit Batok Connection and Preferential Shares Offering.

On 23rd January 2017, Soilbuild REIT has announced its 4Q2016 financial results. Gross Revenue, Net Property Income and Distributable Income has all increased. However, distribution per unit (“DPU”) has fallen by 2.7%. I concluded the decline in distribution per unit to the additional units available due to the preferential shares offering which has diluted its earning per share. Read More

My Sweet Retirement Wishes You a Happy Chinese New Year!

Dear readers and fellow financial bloggers,

The festive season is here again. The year 2017 is the year of the Golden Rooster. Towards the end of January 2017, several REITs have concluded their FY2016 financial results. Most of them have barely achieve an increase in annual distribution per unit (“DPU”). Capitamall Trust, Soilbuild, Keppel REIT all have reported a fall in DPU. From these results, we can sense the economic downturn impacting REITs.

Trump just took office in January 2017 and it is uncertain how his policies may impact global markets. I am not expecting exceptional gains from the REITs I am holding but hope that they can be resilient in current turbulent times. Perhaps there can be some bottom fishing in 2017.

With this, I wish everyone a

Prosperous Happy Chinese New Year!

祝大家新年快乐, 吉祥如意

Best Regards

My Sweet Retirement